- EUR/GBP failed to extend gains above 0.85 handle on Thursday, is trading a narrow 12 pip range in the Asian session.
- The pair is currently holding support at 0.8421 which is 78.6 % Fib retrace of 0.8304 to 0.8852 rally.
- Recovery attempts in the EUR after Francois Bayou's withdrawal from French Presidential race proved fragile.
- The common currency remains undermined by mounting geopolitical concerns in the euro area and resurgence of Greek debt crisis.
- In absence of economic events in the EUR calendar, the major will likely remain at the mercy of the France-German 10-year yield spread.
- Technical studies are bearish, we see scope for test of 0.83 levels. Violation there could see 0.8250.
Support levels - 0.8421 (78.6% Fib), 0.84 (Feb 22 low), 0.8367 (88.6% Fib)
Resistance levels - 0.8455 (5-DMA), 0.8471 (200-DMA), 0.8513 (61.8% Fib)
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Bearish Neutral
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short on rallies around 0.8435, SL: 0.8475, TP: 0.84/ 0.8370/ 0.8350
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -54.9432(Bearish), while Hourly GBP Spot Index was at 104.307 (Highly bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
